Grand Bank reports 7 % rise in profit; growth stunted by huge provisioning of Rs 14 crore

ShareSansar, February 9:

Grand Bank Nepal Limited has reported 7 percent rise in net profit in the second quarter of the current fiscal year 2070/71.

According to the unaudited quarterly report published by the commercial bank today, its net profit has risen to Rs 9.43 crore, up from Rs 8.78 crore in the corresponding quarter of the last fiscal.

Grand Bank’s profit growth was largely stunted by Rs 14.08 crore it had to provision for possible losses — probably due to its heavy focus on the still-sluggish realty sector.

It managed to write back 4.97 crore in write back of the provision for possible loss, though.

Insofar as its core business is concerned, it posted a good net interest income of Rs 25.60 crore, up from Rs 20.21 crore in the corresponding quarter.

It mobilized Rs 19.93 arba in deposit and Rs 15.39 crore in loan as compared to Rs 16.29 arba in deposit and Rs 13.67 arba in loan in the second quarter of the last fiscal.

Another worrisome aspect of the quarterly report is that Grand Bank’s non-performing loan has surged to 4.29 of the total loan, up from just 1.70 in the corresponding quarter.

Its EPS (annualized) stands at 9.44 and net worth per share at Rs 118.43.